CHART OF THE DAY: The Biggest Driver Of Equity Returns Since 1970http://www.businessinsider.com/chart-of-the-day-equity-returns-dividends-1970-2012-5/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Sun, 02 Aug 2015 19:27:52 -0400Sam Rohttp://www.businessinsider.com/c/4fc33e3d69beddc262000002AlbertoMon, 28 May 2012 04:58:37 -0400http://www.businessinsider.com/c/4fc33e3d69beddc262000002
This chart is showing, imho, where you get your return if you invest in stocks. And it is either dividends or multiple expansion; you don't get a return on increased earnings as such. If the company you invested in has higher earnings it will either increase the dividend or higher its market cap, or in some cases neither.http://www.businessinsider.com/c/4fbff8dd6bb3f77a0c00001eJeff BernsteinFri, 25 May 2012 17:25:49 -0400http://www.businessinsider.com/c/4fbff8dd6bb3f77a0c00001e
Where is earnings growth as one of the components?????http://www.businessinsider.com/c/4fbfdc8369bedd106200000fRichard CastroFri, 25 May 2012 15:24:51 -0400http://www.businessinsider.com/c/4fbfdc8369bedd106200000f
This chart makes no sense. The only components of return are multiple expansion, dividends and dividend growth. Hypothetically, you have a company that pays no dividend and grows earnings at 8%/year (nominal). If the company has no multiple expansion, it will return 8%/year (nominal). Also, are you trying to tell me that dividends yield 3% real in US. You can't give a real return total number and then use nominal returns for one of the components or it will clearly be the "Biggest Driver of Equity Returns." Please feel free to tell me where my math went wrong...http://www.businessinsider.com/c/4fbfb795eab8ea084100000fTrevor RumpleteezerFri, 25 May 2012 12:47:17 -0400http://www.businessinsider.com/c/4fbfb795eab8ea084100000f
This is why it's so critical to raise taxes on dividends. We can't have cheeky rich people hogging all the gains.